The Union Finance Ministry has revised the pension rules by introducing two additional investment options for employees of Central Autonomous Bodies (CABs) covered under the National Pension System (NPS).
According to a statement issued by the Finance Ministry on Tuesday (July 7), these employees can now choose the Aggressive Life Cycle Fund (LC-75) and the Balanced Life Cycle Fund (BLC).
Earlier, these two investment options were available only to central government employees covered under the NPS.
With the latest decision, NPS subscribers working in Central Autonomous Bodies will also be able to invest in these funds.
Features of the New Investment Options
The Aggressive Life Cycle Fund (LC-75), now renamed LC-75-High, allows an equity exposure of up to 75%.
It is meant for subscribers who are looking for higher long-term growth and are comfortable with taking greater investment risk.
Meanwhile, the Balanced Life Cycle Fund (BLC), now renamed the Aggressive Life Cycle Fund, limits equity exposure to 50%.
Under this option, the equity allocation starts reducing gradually from the age of 45, offering a balanced mix of growth potential and investment stability.
Finance Ministry’s Notification
The Department of Expenditure under the Ministry of Finance has issued an Office Memorandum dated July 1, 2026, extending the Department of Financial Services’ notification dated November 13, 2025 to employees of Central Autonomous Bodies.
The earlier notification had introduced the additional investment options—LC-75 and the Balanced Life Cycle Fund (BLC)—for central government employees covered under the NPS.
According to the Finance Ministry, extending these investment options is aimed at giving NPS subscribers in Central Autonomous Bodies greater flexibility in planning their retirement.
Employees will be able to choose investment options that match their individual risk appetite, financial goals, and retirement planning needs.
The ministry also said that the move strengthens investment choices for subscribers and makes the National Pension System more attractive for employees of Central Autonomous Bodies covered under the NPS.